<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                          ----------------------------
                                   FORM 10-QSB
    (Mark One)

          [ X ]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended   September 30, 2001

                                       OR

          [   ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

For the transition period from                        to
                                ---------------------    -----------------------

                        Commission file number: 333-59109

                                ABLE ENERGY, INC.
             (Exact name of registrant as specified in its charter)

          Delaware                                               22-3520840
(State or other jurisdiction of                              (I.R.S. employer
incorporation or organization)                               identification No.)

         198 Green Pond Road
            Rockaway, NJ                                          07866
  (Address of principal executive offices)                      (Zip code)

Registrant's telephone number, including area code: (973) 625-1012


                                 Not Applicable
              (Former name, former address and former fiscal year,
                         if changed since last report)


         Indicate by check X whether registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

         As of November 15, 2001, 2,001,250 shares, $.001 Par value per share,
of Able Energy, Inc. were issued and outstanding.

                          ----------------------------
<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS
                                -----------------


                                                                                               PAGE
                                                                                               ----

<S>                                                                                        <C>
PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS (UNAUDITED)

         Accountants' Report                                                                     3
         Consolidated Balance Sheets as of June 30, 2001 and
            September 30, 2001                                                                   4 - 5
         Consolidated Statements of Income for the three
            months ended September 30, 2001 and September 30, 2000                               6

         Consolidated Statement of Stockholders' Equity three months
            ended September 30, 2001                                                             7

         Consolidated Statements of Cash Flows for the three months
            ended September 30, 2001 and 2000                                                    8

         Notes to Unaudited Financial Statements                                                 9 - 23
</TABLE>







<PAGE>

<TABLE>
<CAPTION>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

                           CONSOLIDATED BALANCE SHEET
                           --------------------------

                                     ASSETS
                                     ------
                                                                                              September 30,          June 30,
                                                                                                 2001                  2001
                                                                                              (Unaudited)            (Audited)
                                                                                              -----------           ----------
<S>                                                                                       <C>                  <C>
Current Assets:
    Cash                                                                                       $  524,140           $  999,018
    Restricted Cash                                                                                     -              490,000
    Accounts Receivable (Less Allowance for Doubtful
       Accounts of ($209,927) at September 30 and June 30, 2001                                 2,050,131            1,819,856
    Inventory                                                                                     619,751              367,326
    Notes Receivable - Current Portion                                                             30,881               26,865
    Miscellaneous Receivable                                                                       30,983               38,633
    Prepaid Expense                                                                               116,358              111,564
    Prepaid Expense - Income Taxes                                                                 83,904               83,904
    Deferred Income Tax                                                                            58,730               58,730
    Due From Officer                                                                               44,690               44,690
                                                                                               ----------           ----------
        Total Current Assets                                                                    3,559,568            4,040,586
                                                                                               ----------           ----------

Property and Equipment:
    Land                                                                                          451,925              451,925
    Building                                                                                    1,085,950            1,085,950
    Trucks                                                                                      2,616,787            2,604,147
    Fuel Tanks                                                                                  1,112,161            1,100,588
    Machinery and Equipment                                                                       494,525              490,325
    Leasehold Improvements                                                                        493,865              497,865
    Cylinders                                                                                     508,717              507,394
    Office Furniture and Equipment                                                                183,625              183,625
    Website Development Costs                                                                   2,239,141            2,264,141
                                                                                               ----------           ----------
                                                                                                9,186,696            9,185,960
    Less: Accumulated Depreciation and Amortization                                             2,615,690            2,344,458
                                                                                               ----------           ----------
        Net Property and Equipment                                                              6,571,006            6,841,502
                                                                                               ----------           ----------

Other Assets:
    Deposits                                                                                      112,283              101,283
    Notes Receivable - Less Current Portion                                                       225,854              231,102
    Customer List, Less Accumulated Amortization of ($198,635)
         September 30, 2001 and  ($188,122) June 30, 2001                                         412,215              422,728
    Covenant Not to Compete, Less Accumulated Amortization of ($224,371)                           59,196               73,374
September 30, 2001 and  ($210,193) June 30, 2001
    Development Costs - Franchising, Less Accumulated Amortization of                              43,657               45,955
                                                                                               ----------           ----------
($2,298) September 30, 2001 and  ($0.00) June 30, 2001                                            853,205              874,442
                                                                                               ----------           ----------
         Total Other Assets
                                                                                              $10,983,779          $11,756,530
                                                                                              ===========          ===========
         Total Assets
</TABLE>

                   See Accompanying Notes and Auditor's Report

                                       4
<PAGE>

<TABLE>
<CAPTION>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

                             BALANCE SHEET (CONT'D)
                             ----------------------

                       LIABILITIES & STOCKHOLDERS' EQUITY
                       ----------------------------------


                                                                                            September 30,            June 30,
                                                                                                2001                   2001
                                                                                             (Unaudited)             (Audited)
                                                                                             -----------             ---------
<S>                                                                                         <C>                   <C>
Current Liabilities:
    Accounts Payable                                                                          $1,555,992            $ 1,655,487
    Note Payable - Bank                                                                                -                449,720
    Note Payable - Other                                                                         500,000                500,000
    Current Portion of Long-Term Debt                                                            511,486                525,882
    Accrued Expenses                                                                             309,061                456,965
    Accrued Taxes                                                                                 12,501                 28,174
    Customer Pre-Purchase Payments                                                             2,030,944              1,324,249
    Customer Credit Balances                                                                     491,933                223,720
    Escrow Deposits                                                                               57,181                  5,000
                                                                                              ----------             ----------
        Total Current Liabilities                                                              5,469,098              5,169,197

Deferred Income                                                                                   79,679                 79,679
Deferred Income Taxes                                                                             54,701                 55,776
Long Term Debt: Less Current Portion                                                           1,568,316              1,692,946
                                                                                              ----------             ----------
        Total Liabilities                                                                      7,171,794              6,997,598
                                                                                              ----------             ----------

Stockholders' Equity:
    Preferred Stock
    Authorized 10,000,000 Shares Par Value $.001 per share
     Issued - None                                                                                     -                      -
    Common Stock
    Authorized 10,000,000 Par Value $.001 per share Issued
      and Outstanding 2,001,250 Shares September 30, 2001,
      2,000,000 Shares June 30, 2001                                                               2,002                  2,000
    Paid in Surplus                                                                            5,666,836              5,662,775
    Retained Earnings (Deficit)                                                               (1,856,853)              (905,843)
                                                                                              ----------             ----------
        Total Stockholders' Equity                                                             3,811,985              4,758,932
                                                                                              ----------             ----------

        Total Liabilities and Stockholders' Equity                                           $10,983,779            $11,756,530
                                                                                             ===========            ===========
</TABLE>

                   See Accompanying Notes and Auditors' Report

                                        5

<PAGE>

<TABLE>
<CAPTION>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS

                                   (UNAUDITED)


                                                                                         Three Months September 30,
                                                                                         --------------------------


                                                                                     2001                        2000
                                                                                     ----                        ----

<S>                                                                              <C>                          <C>
Net Sales                                                                        $5,267,297                   $5,872,015

Cost of Sales                                                                     4,720,046                    5,268,106
                                                                                 ----------                   ----------

   Gross Profit                                                                     547,251                      603,909
                                                                                 ----------                   ----------

Expenses
   Selling, General and Administrative Expenses                                   1,214,557                    1,132,622
   Depreciation and Amortization Expense                                            298,221                      171,528
                                                                                 ----------                   ----------
      Total Expenses                                                              1,512,778                    1,304,150
                                                                                 ----------                   ----------

   (Loss) From Operations                                                          (965,527)                    (700,241)
                                                                                 ----------                   ----------

Other Income (Expenses):
   Interest and Other Income                                                         84,680                      117,273
   Interest Expense                                                                 (71,238)                     (45,165)
                                                                                 ----------                   ----------
      Total Other Income (Expenses)                                                  13,442                       72,108
                                                                                 ----------                   ----------

   (Loss) Before Provision for Income Taxes                                        (952,085)                    (628,133)

Provision (Reduction) for Income Taxes                                               (1,075)                         650
                                                                                 ----------                   ----------

   Net (Loss)                                                                    $ (951,010)                  $ (628,783)
                                                                                 ----------                   ----------

Basic (Loss) Per Common Share                                                    $     (.48)                  $     (.31)
                                                                                 ----------                   ----------

Diluted (Loss) Per Common Share                                                  $     (.46)                  $     (.31)
                                                                                 ----------                   ----------

Weighted Average Number of Common Shares
   Outstanding                                                                    2,000,298                    2,000,000
                                                                                  =========                    =========

Weighted Average Number of Common Shares Outstanding,
    Assuming Dilution                                                             2,078,989                    2,000,000
                                                                                  =========                    =========
</TABLE>

                   See Accompanying Notes and Auditors' Report

                                        6

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

                      THREE MONTHS ENDED SEPTEMBER 30, 2001



<TABLE>
<CAPTION>
                                                          Common Stock
                                                         .001 Par Value
                                                         --------------


                                                                           Additional                               Total
                                                                           Paid-in             Retained          Stockholders'
                                             Shares        Amount          Surplus             Earnings             Equity
                                             ------        ------          -------             --------             ------

<S>                                         <C>             <C>            <C>                 <C>                 <C>
         Balance - July 1, 2001             2,000,000       $ 2,000        $5,662,775          $ (905,843)         $4,758,932

         Shares Issued                      1,250           2              4,061                                    4,063

         Net Loss                           -               -              -                     (951,010)         (951,010)
                                            ---------       -------        ----------          -----------         ---------


         Balance - September 30, 2001       2,001,250       $2,002         $5,666,836          $(1,856,853)        $3,811,985
                                            =========       ======         ==========          ============        ==========
</TABLE>





                   See Accompanying Notes and Auditors' Report

                                        7

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                              THREE MONTHS ENDED SEPTEMBER 30
                                                                                        UNAUDITED
                                                                                        ---------



                                                                                2001                  2000
                                                                                ----                  ----
<S>                                                                         <C>                      <C>
Cash Flows From Operating Activities
------------------------------------
   Net  (Loss) - Continuing Operations                                      $ (951,010)              $ (628,783)
   Adjustments to Reconcile Net Income to Cash
   used by Operating Activities:
      Depreciation and Amortization                                            298,221                  171,538
      (Increase) Decrease in:
         Accounts Receivable                                                  (230,275)                 (87,617)
         Inventory                                                            (252,425)                (563,729)
         Prepaid Expenses                                                       (4,794)                  17,779
         Deposits                                                              (11,000)                 (72,185)
      Increase (Decrease) in:
         Accounts Payable                                                      (99,495)                (146,373)
         Accrued Expenses                                                     (163,577)                 616,152
         Customer Advance Payments                                             706,695                1,755,878
         Customer Credit Balance                                               268,213                        -
         Deferred Income Taxes                                                  (1,075)                     650
         Escrow Deposits                                                        52,181                        -
         Deferred Income                                                             -                  (18,551)
                                                                            ----------               ----------
           Net Cash (Used) Provided by Operating Activities                   (388,341)               1,044,759
                                                                            ----------               ----------
CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of Property and Equipment
   Web Site Development Costs                                                  (25,736)                (200,541)
    Note and Other Receivables                                                  25,000               (1,106,796)
          Net Cash (Used) Provided  By Investing Activities                      8,882                  (40,603)
                                                                            ----------               ----------
                                                                                 8,146               (1,347,940)
CASH FLOWS FROM FINANCING ACTIVITIES
   (Decrease) Increase in Notes Payable
   Decrease in Long-Term Debt                                                 (449,720)                 419,424
   Increase in Long-Term Debt                                                 (139,026)                (174,663)
   Sale of Common Stock                                                              -                  500,000
                                                                                 4,063                        -
                                                                            ----------               ----------
           Net Cash (Used) Provided  By Financing Activities                  (584,683)                 744,761
                                                                            ----------               ----------
Net (Decrease) Increase In Cash
Cash - Beginning of Year                                                      (964,878)                 441,580
Cash - End of Year                                                           1,489,018                2,266,980
                                                                            ----------               ----------
                                                                            $  524,140               $2,708,560
                                                                            ==========               ==========
The Company had Interest Cash Expenditures of:
The Company had Tax Cash Expenditures of:                                   $   71,638               $   45,165
                                                                            $        -               $        -

</TABLE>

                             See Accompanying Notes

                                        8

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------



NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------------

                  Consolidation and Basis of Presentation
                  Change of Fiscal Year End:
                  The Board of Directors have elected to change the Company and
                  Subsidiaries' year end from December 31, to June 30, to more
                  clearly reflect the natural business year end when the
                  business activities have reached the lowest point in their
                  annual cycle. The initial year of the change was the six month
                  short period year end, January 1, 2001 to June 30, 2001.

                  Principles of Consolidation
                  The consolidated financial statements include the accounts of
                  Able Energy, Inc. and its subsidiaries. The minority interest
                  of 1% in Able Propane, LLC is immaterial and has not been
                  shown separately. All material inter-company balances and
                  transactions were eliminated in consolidation.

                  Majority Ownership
                  The Company is the majority owner, owning 70.6% of the issued
                  shares of a subsidiary, PriceEnergy.Com, Inc. in which their
                  capital investment is $25,000. The subsidiary has established
                  a Web Site for the sale of products through a network of
                  suppliers originally on the East Coast of the United States.
                  The Web Site became active in October 2000 (See Notes 8 and
                  14)

                  Minority Interest
                  The minority interest in PriceEnergy.Com, Inc. is a deficit
                  and, in accordance with Accounting Research Bulletin No. 51,
                  subsidiary losses should not be charged against the minority
                  interest to the extent of reducing it to a negative amount. As
                  such, the losses have been charged against the Company, the
                  majority owner. The loss for three months ended September 30,
                  2001 is $276,716, (See Notes 8 and 13).

                  The consolidated interim financial statements included herein
                  have been prepared by the Company, without audit, pursuant to
                  the rules and regulations of the Securities and Exchange
                  Commission. Certain information and footnote disclosures
                  normally included in financial statements prepared in
                  accordance with generally accepted accounting principles have
                  been condensed or omitted pursuant to such rules and
                  regulations, although the Company believes that the
                  disclosures are adequate to make the information presented not
                  misleading.

                  These statements reflect all adjustments, consisting of normal
                  recurring adjustments which, in the opinion of management, are
                  necessary for fair presentation of the information contained
                  therein. It is suggested that these consolidated financial
                  statements be read in conjunction with the financial
                  statements and notes thereto included in the Company's annual
                  report for the year ended June 30, 2001. The Company follows
                  the same accounting policies in preparation of interim
                  reports.

                                        9

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
------------------------------------------------------------------

                  Results of operations for the interim periods are not
                  indicative of annual results.

                  Nature of Operations
                  Able Oil Company, Able Melbourne and Able Energy New York,
                  Inc. are full service oil companies that market and distribute
                  home heating oil, diesel fuel and kerosene to residential and
                  commercial customers operating in the northern New Jersey,
                  Melbourne, Florida, and Warrensburg, New York respectively.
                  Able Propane, installs propane tanks which it owns and sells
                  propane for heating and cooking, along with other residential
                  and commercial uses.

                  The Company's operations are subject to seasonal fluctuations
                  with a majority of the Company's business occurring in the
                  late fall and winter months. Approximately 70% of the
                  Company's revenues are earned and received from October
                  through March, and the overwhelming majority of such revenues
                  are derived from the sale of home heating fuel. However, the
                  seasonality of the Company's business is offset, in part, by
                  the increase in revenues from the sale of diesel and gasoline
                  fuels during the spring and summer months due to the increased
                  use of automobiles and construction apparatus.

                  Inventories
                  Inventories are valued at the lower of cost (first in, first
                  out method) or market.

                  Property and Equipment
                  Property and equipment are stated at cost less accumulated
                  depreciation. Depreciation is provided by using the
                  straight-line method based upon the estimated useful lives of
                  the assets (5 to 40 years). Depreciation expense for the three
                  months ended September 30, 2001 and 2000 amounted to $170,664
                  and $152,833, respectively.

                  For income tax basis, depreciation is calculated by a
                  combination of the straight-line and modified accelerated cost
                  recovery systems established by the Tax Reform Act of 1986.

                  Expenditures for maintenance and repairs are charged to
                  expense as incurred whereas expenditures for renewals and
                  betterments are capitalized.

                  The cost and related accumulated depreciation of assets sold
                  or otherwise disposed of during the period are removed from
                  the accounts. Any gain or loss is reflected in the year of
                  disposal.


                                       10

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
------------------------------------------------------------------

                  Web Site Development Costs
                  Costs of $2,239,140 incurred in the developmental stage for
                  computer hardware and software have been capitalized in
                  accordance with accounting pronouncement SOP98-1. The costs
                  are included in Property and Equipment and will be amortized
                  on a straight line basis during the estimated useful life, 5
                  years. Operations commenced in October 2000. Amortization for
                  the three months ended September 30, 2001 is $106,564.

                  Intangible Assets
                  Intangibles are stated at cost and amortized as follows:
                  Customer Lists of $571,000 and Covenant Not To Compete of
                  $183,567 related to the Connell's Fuel Oil Company acquisition
                  on October 28, 1996, by Able Oil Company are being amortized
                  over a straight-line period of 15 and 5 years, respectively.
                  The current period amortization also includes a customer list
                  of $39,850 and Covenant Not To Compete of $100,000 relating to
                  the acquisition from B & B Fuels on August 27, 1999, is being
                  amortized over a straight-line period of 10 and 5 years,
                  respectively. The amortization for the three months ended
                  September 30, 2001 and 2000 are $20,993 and $18,695,
                  respectively.

                  For income tax basis, the Customer Lists and the Covenant Not
                  To Compete are being amortized over a straight-line method of
                  15 years as per the Tax Reform Act of 1993.

                  Use of Estimates
                  The preparation of financial statements in conformity with
                  generally accepted accounting principles requires management
                  to make estimates and assumptions that affect the amounts
                  reported in the financial statements and accompanying notes.
                  Although these estimates are based on management's knowledge
                  of current events and actions it may undertake in the future,
                  they may ultimately differ from actual results.

                  Income Taxes
                  Effective January 1, 1997, all the subsidiaries, which were
                  S-Corporations, terminated their S-Corporation elections. The
                  subsidiaries are filing a consolidated tax return with Able
                  Energy, Inc.

                  Effective January 1, 1997, the Company has elected to provide
                  for income taxes based on the provisions of Financial
                  Accounting Standards Board ("FASB") Statement of Financial
                  Accounting Standards ("SFAS") No. 109, "Accounting for Income
                  Taxes", which requires recognition of deferred tax assets and
                  liabilities for the expected future tax consequences of events
                  that have been included in the financial statements and tax
                  returns in different years. Under this method, deferred income
                  tax assets and liabilities are determined based on the
                  difference between the financial statement and tax bases of
                  assets and liabilities using enacted tax rates in effect for
                  the year in which the differences are expected to reverse.


                                       11
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 1         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
------------------------------------------------------------------

                  Concentrations of Credit Risk
                  The Company performs on-going credit evaluations of its
                  customers' financial conditions and requires no collateral
                  from its customers.

                  Financial instruments which potentially subject the Company to
                  concentrations of credit risk consists of checking and savings
                  accounts with several financial institutions in excess of
                  insured limits. The excess above insured limits is
                  approximately $345,675. The Company does not anticipate
                  non-performance by the financial institutions.

                  Cash
                  For the purpose of the statement of cash flows, cash is
                  defined as balances held in corporate checking accounts and
                  money market accounts.

                  Advertising Expense
                  Advertising costs are expensed at the time the advertisement
                  appears in various publications and other media. The expense
                  was $128,265 and $128,268 for the three months ended September
                  30, 2001 and 2000, respectively.

NOTE 2          NOTES RECEIVABLE
--------------------------------

             A.   The Company has a Receivable from Able Montgomery, Inc. and
                  Andrew W. Schmidt related to the sale of Able Montgomery, Inc.
                  to Schmidt, and truck financed by Able Energy, Inc. No
                  payments of principal or interest had been received for more
                  than one year. A new note was drawn dated June 15, 2000 for
                  $170,000, including the prior balance, plus accrued interest.
                  The Note bears interest at 9.5% per annum and payments
                  commence October 1, 2000. The payments will be monthly in
                  varying amount each year with a final payment of $55,981.07
                  due September 1, 2010. No payments were received in the year
                  ended December 31, 2000. In February 2001, two (2) payments
                  were received in the amount $2,691.66, interest only. In
                  September 2001, $15,124.97 was received covering payments from
                  December 2000 through October 2001, representing interest of
                  $14,804.13 and principal of $320.84


                                       12
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 2          NOTES RECEIVABLE (CONT'D)
-----------------------------------------

                  The note is secured by a pledge and security agreement and
                  stock purchase agreement (Stock of Able Montgomery, Inc.),
                  dated December 31, 1998, and the assets of Andrew W. Schmidt
                  with the note dated June 15, 2000. The income on the sale of
                  the company in December 1998 and the accrued interest on the
                  drawing of the new note are shown as deferred income to be
                  realized on collection of the notes.

                  Maturities of the Note Receivable are as follows:

                           For the 12 Months Ending
                                  September 30,             Principal Amount
                                  -------------             ----------------
                                    2002                      $      3,701
                                    2003                             9,645
                                    2004                            10,602
                                    2005                            11,654
                                    2006                            12,811
                                    Balance                        121,266
                                                                   -------
                                            Total                 $169,679
                                                                  ========


         B.       Able Oil Company has three (3) Notes Receivable for the sale
                  of oil delivery trucks to independent drivers who also deliver
                  oil for the Company. The Notes bear interest at the rate of
                  12% per annum. Two notes began December 1998 and one began
                  February 1999. The Notes are payable eight (8) months per year
                  September through April, the oil delivery season.

                  Maturities of these Notes Receivable are as follows:

                           For the 12 Months Ended
                                   September 30,            Principal Amount
                                   -------------            ----------------
                                    2002                      $       26,410
                                    2003                              23,598
                                    2004                              19,039
                                    2005                               6,948
                                    2006                               7,524
                                    Balance                            3,536
                                                                   ---------
                                            Total                  $  87,055
                                                                   =========


                                       13
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------

NOTE 3          INVENTORIES
---------------------------



          Items                              September 30,           June 30,
          -----
                                                 2001                  2001
                                                 ----                  ----


          Heating Oil                           $ 388,051             $ 134,229
          Diesel Fuel                              26,194                40,770
          Kerosene                                  8,036                 8,013
          Propane                                  14,527                14,287
          Parts and Supplies                      182,943               170,027
                                                ---------             ---------
               Total                            $ 619,751             $ 367,326
                                                =========             =========


NOTE 4         NOTES PAYABLE BANK
---------------------------------

                  The Agreement with Able Oil Company and PNC Bank, dated August
                  11, 1999, was amended July 14, 2000. The term was extended
                  from June 30, 2001 to September 29, 2001. The loan was paid in
                  full effective September 29, 2001. The banking relation was
                  terminated and all collateral was being released by PNC Bank.

NOTE 5          NOTE PAYABLE
----------------------------

                  The Company has borrowed $500,000 from an unrelated
                  individual. The Note is dated June 26, 2001 with interest at
                  12% per annum. The interest will be paid monthly at $5,000 per
                  month commencing on August 1, 2001. The Note will mature on
                  June 26, 2002 unless the borrower (the Company), at its
                  option, elects to extend the maturity date to December 26,
                  2002. The Note may be prepaid in whole or part from
                  time-to-time without penalty. At the maturity date, a final
                  payment of the unpaid principal and interest shall be due and
                  payable. In connection with this Note, the Company has issued
                  the lender warrants to purchase 40,000 shares of its common
                  stock at $4 per share. The warrants vest immediately and must
                  be exercised no later than June 26, 2004.

NOTE 6          LONG-TERM DEBT
------------------------------

                  Mortgage note payable dated, August 27, 1999, related to the
                  purchase of B & B Fuels facility and equipment. The total note
                  was $145,000. The note is payable in the monthly amount of
                  principal and interest of $1,721.18 with and interest rate of
                  7.5% per annum. The initial payment was made on September 27,
                  1999, and continues monthly until August 27, 2009 which is the
                  final payment. The note is secured by a mortgage made by Able
                  Energy New York, Inc. on property at 2 and 4 Green Terrace and
                  4 Horicon Avenue, Town of Warrensburg, Warren County, New
                  York. The balance due on this Note at September 30, 2001 was
                  $123,023.

                                       14

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------




NOTE 6          LONG-TERM DEBT (CONT'D)
---------------------------------------

                  Mortgage note payable dated, August 31, 1999, related to the
                  purchase of the facility and equipment in Rockaway, New Jersey
                  by Able Energy Terminal, LLC ("Terminal"). The note is in the
                  amount of $650,000.

                  Pursuant to Section 4.4 of the Agreement of Sale to purchase
                  the Terminal, , the Principal Sum of the $650,000 Note shall
                  be reduced by an amount equal to one-half of all sums expended
                  by Borrower on the investigation and remediation of the
                  property provided, however, that the amount of said reduction
                  shall not exceed $250,000 (the "Remediation Amount").

                  The "Principal Sum: Less the "Remediation Amount" shall be an
                  amount equal to $400,000 (the "Reduced Principal Sum"). The
                  Reduced Principal Sum shall bear interest from the date hereof
                  at the rate of 8.25% per annum. Any portion of the Remediation
                  Amount not utilized in the investigation and remediation of
                  the property shall not begin to accrue interest until such
                  time that (i) a "No Further Action Letter" is obtained from
                  the Department of Environmental Protection and (ii) an
                  outstanding lawsuit concerning the property is resolved
                  through settlement or litigation (subject to no further
                  appeals). All payments on this Note shall be applied first to
                  the payment of interest, with any balance to the payment to
                  reduction of the reduced Principal Sum, (See Note 10).







                                       15
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 7          INCOME TAXES
----------------------------

                  Effective January 1, 1997, the Company adopted Statement of
                  Financial Accounting Standards No. 109, Accounting for Income
                  Taxes.

                  The differences between the statutory Federal Income Tax and
                  Income Taxes Continuing Operation is accounted for as follows:

<TABLE>
<CAPTION>

                                                                                            2001
                                                                                            ----

                                                                                                Percent of
                                                                                                  Pretax
                                                                               Amount             Income
                                                                               ------             ------


<S>                                                                           <C>                  <C>
    Statutory Federal Income Tax                                              $  (750)                15%
    State Income Tax                                                             (325)               6.5%
                                                                              -------               ----

    Income Taxes                                                              $(1,075)              21.5%
                                                                              =======               ====

    Income Taxes consists of:
    Current                                                                   $     -
    Deferred                                                                   (1,075)
                                                                              -------

         Total                                                                $(1,075)
                                                                              =======

<CAPTION>

                                                                                            2000
                                                                                            ----


                                                                               Amount             Percent
                                                                               ------             -------


<S>                                                                           <C>
    Statutory Federal Income Tax                                              $   450
    State Income Tax                                                              200
                                                                              -------

    Income Taxes                                                              $   650
                                                                              =======

    Income Taxes consist of:
     Current                                                                  $     -
     Deferred                                                                     650
                                                                              -------
        Total                                                                 $   650
                                                                              =======
</TABLE>

                                       16
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 7          INCOME TAXES (CONT'D)
-------------------------------------

                 The types of temporary differences between the tax bases of
                 assets and liabilities and their financial reporting amounts
                 that give rise to a significant portion of the deferred tax
                 liability and deferred tax asset and their approximate tax
                 effects are as follows at:

<TABLE>
<CAPTION>

                                                                                  September 30, 2001
                                                                                  ------------------



                                                                             Temporary               Tax
                                                                            Difference              Effect
                                                                            ----------              ------


<S>                                                                         <C>                   <C>
   Depreciation                                                             $ (169,389)           $ (54,701)
   Allowance for Doubtful Accounts                                             209,927               54,695
   Gain on Sale of Subsidiary                                                   18,766                4,035


<CAPTION>

                                                                                     June 30, 2001
                                                                                     -------------



                                                                             Temporary               Tax
                                                                            Difference              Effect
                                                                            ----------              ------


<S>                                                                         <C>                   <C>
   Depreciation                                                             $ (174,389)           $ (55,776)
   Allowance for Doubtful Accounts                                             209,927               54,695
   Gain on Sale of Subsidiary                                                   18,766                4,035

</TABLE>

                 Able energy, Inc., et al, open years are December 31, 1998,
                 1999, 2000 and June 30, 2001. The Company has a net operating
                 loss carryforward of approximately $1,360,000. The net
                 operating loss expires between June 30, 2019 and 2021.

                 These carryforward losses are available to offset future
                 taxable income, if any. The Company's utilization of this
                 carryforward against future taxable income is subject to the
                 Company having profitable operations or sale of Company assets
                 which create taxable income. At this time, the Company believes
                 that a full valuation allowance should be provided. The
                 component of the deferred tax asset as of September 30, 2001
                 are as follows:

<TABLE>
<CAPTION>
<S>                                                                                             <C>
                           Net Operating Loss Carryforward - Tax Effect                          $462,400
                           Valuation Allowance                                                   (462,400)
                                                                                                ---------
                           Net Deferred Tax based upon Net
                              Operating Loss Carryforward                                       $  - 0 -
                                                                                                =========
</TABLE>


                                       17
<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 8           NOTE RECEIVABLE - SUBSIDIARY
---------------------------------------------

                  The Company has a Note Receivable from PriceEnergy.Com, Inc.
                  for advances made in the development of the Website, including
                  hardware and software costs. All of PriceEnergy.Com, Inc.'s
                  assets are pledged as collateral to Able Energy, Inc. The
                  amount of the note is $1,350,000 dated November 1, 2000 with
                  interest at 8% per annum payable quarterly. Principal payments
                  to begin two years after the date of the Note, November 1,
                  2002. Interest, in the amount of $27,000 has been accrued at
                  September 30, 2001. The Note and interest have been eliminated
                  in the consolidated financial statements (See Notes 1and 13).

NOTE 9          PROFIT SHARING PLAN
-----------------------------------

                  Effective January 1, 1997, Able Oil Company established a
                  Qualified Profit Sharing Plan under Internal Revenue Code
                  Section 401-K. The Company matches 25% of qualified employee
                  contributions. The expense was $7,268 (2001) and $5,577
                  (2000).


NOTE 10         COMMITMENTS AND CONTINGENCIES
---------------------------------------------

                  The Company is subject to laws and regulations relating to the
                  protection of the environment. While it is not possible to
                  quantify with certainty the potential impact of actions
                  regarding environmental matters, in the opinion of management,
                  compliance with the present environmental protection laws will
                  not have a material adverse effect on the financial condition,
                  competitive position, or capital expenditures of the Company.

                  In accordance with the agreement on the purchase of the
                  property on Route 46, Rockaway, New Jersey by Able Energy
                  Terminal, LLC, the purchaser shall commence after the closing,
                  the investigation and remediation of the property and any
                  hazardous substances emanating from the property in order to
                  obtain a No Further Action letter from the New Jersey
                  Department of Environmental Protection (NJDEP). The purchaser
                  will also pursue recovery of all costs and damages related
                  thereto in the lawsuit by the seller against a former tenant
                  on the purchased property. Purchaser will assume all
                  responsibility and direction for the lawsuit, subject to the
                  sharing of any recoveries from the lawsuit with the seller,
                  50-50. The seller by reduction of its mortgage will pay costs
                  related to the above up to $250,000 (see Note 6). A tentative
                  settlement has been achieved by the Company with regard to the
                  lawsuit. The settlement provides for a lump sum payment of
                  $397,500 from the defendants to the Company. In return, the
                  defendants require a release from the Estate (the Seller) and
                  a release and indemnification from the Company. The defendants
                  will provide a release to Able Energy and the Estate. Pursuant
                  to the settlement agreement, the Estate receives 50% of the
                  settlement amount, net of attorney fees.


                                       18
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 10         COMMITMENTS AND CONTINGENCIES (CONT'D)
------------------------------------------------------

                  The Company's share (the Purchaser) of the recovery shall be
                  placed in an escrow account and used exclusively to obtain a
                  No Further Action Letter. The costs of the cleanup pursuant to
                  the Agreement of Sale must be shared equally (50/50) by the
                  seller and purchaser up to Seller's cap of $250,000. Seller's
                  contribution to the cleanup is in the form of a reduction to
                  the Note and not by direct payments. In the opinion of
                  management, the Company will not sustain costs in this matter
                  which will have a material adverse effect on its financial
                  condition.

                  Price Energy.Com, Inc., a subsidiary, has commenced suit
                  against ThinkSpark Corporation on Consulting Services
                  Agreement, dated June 2, 2000. ThinkSpark was to provide
                  services of professional quality performed by knowledgeable
                  staff familiar with the operation of the software and its
                  application and conforming to generally accepted data
                  processing practices. ThinkSpark agreed that it could develop,
                  deliver and install the system to be operational by mid-August
                  2000. ThinkSpark ceased work in mid-October 2000 and the
                  project was not completed. Price Energy hired another firm
                  which is completing the project. ThinkSpark admits the
                  original estimate for the project was $266,000.

                  Price Energy paid ThinkSpark $82,539 and is paying the new
                  firm $75,600 which will complete the work.

                  ThinkSpark has filed a counterclaim seeking payment of
                  $283,100.62, which is the total amount of bills rendered.
                  There is a liability of $107,861 in accounts payable on the
                  financial statements. This amount represents the original
                  estimate of $266,000, less payments, to ThinkSpark and the new
                  firm hired to complete the project. The Company is unable to
                  predict the outcome of the case, but management feels the
                  settlement should not be more than the booked liability.

                  The Company in the normal course of business has been involved
                  in several suits. Two suits have been settled out of court at
                  agreeable terms, according to management. No suits are
                  currently in litigation, except as noted above.

NOTE 11         OPERATING LEASE
-------------------------------

                  Able Energy Terminal, LLC, has acquired the following lease on
                  the property it purchased on Route 46 in Rockaway, New Jersey.

                  The lease with Able Oil Company, a wholly owned subsidiary of
                  Able Energy, Inc., has an expiration date of July 31, 2004.
                  The lease provides for a monthly payment of $1,200 plus a one
                  cent per gallon through put, as per a monthly rack meter
                  reading.

                  Estimated future rents are $14,400 per year, plus the one cent
                  per gallon through put charges per the monthly rack meter
                  readings.

                                       19

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 11         OPERATING LEASE (CONT'D)
----------------------------------------

                  The Company leased 9,800 square feet in the Rockaway Business
                  Centre on Green Pond Road in Rockaway, New Jersey. The
                  facility will be used as a call center and will combine the
                  administrative operations in New Jersey in one facility. The
                  lease has a term of five (5) years from August 1, 2000 through
                  July 31, 2005.

                  The rent for the first year is $7,145,83 per month and the
                  second through fifth year is $7,431.67 per month, plus 20.5%
                  of the building's annual operational costs and it's portion of
                  utilities. The monthly rent, including Common Area Charges, as
                  of October 2000 is $9,084 per month. The lease does not
                  contain any option for renewal. The rent expense was $27,252
                  for the three months ended September 30, 2001. The estimated
                  future rents are as follows:

                        Year Ended June 30,
                        -------------------
                                2002                              $  84,000
                                2003                                110,000
                                2004-2006                           230,000
                                                                    -------
                                         Total                    $ 424,000
                                                                  =========

                  The following summarizes the month to month operating leases
for the other subsidiaries:

                      Able Oil Melbourne         $500.00, per month
                                                 Total  rent expense, $3,000
                      Able Energy New York       $500.00, per month
                                                 Total  rent expense, $3,000
NOTE 12          FRANCHISING
----------------------------

                  The Company sells franchises permitting the operation of a
                  franchised business specializing in residential and commercial
                  sales of fuel oil, diesel fuel, gasoline, propane and related
                  services. The Company will provide training, advertising and
                  use of Able credit for the purchase of product, among other
                  things, as specified in the Agreement. The franchisee has an
                  option to sell the business back to the Company after two (2)
                  years of operations for a price calculated per the Agreement.
                  The Company signed its first franchise agreement in September
                  2000. On June 29, 2001, PriceEnergy.Com franchising, LLC, a
                  subsidiary, signed its first franchise agreement. The
                  franchisee will operate a B-franchised business, using the
                  proprietary marks and a license from PriceEnergy.Com, Inc. and
                  will establish the presence of the franchisee's company on the
                  PriceEnergy internet website. The franchisee will have the
                  exclusive territory of Fairfield County, Connecticut as
                  designated in the agreement. The franchisee paid the following
                  amounts in July 2001:
                         1.1      A non-refundable franchise fee of $25,000.
                         2.       An advertising deposit of $15,000 and a $5,000
                                  escrow deposit.

                  The non-refundable fee of $25,000 has been recorded as Other
                  Income in the period ended September 30, 2001.


                                       20
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 13         RELATED PARTY TRANSACTIONS
------------------------------------------

                  $44,690 is due from the major Shareholder/Officer of the
                  Company. This amount is evidenced by a Note bearing interest
                  at a rate of 8 1/2% between the Shareholder and the Company.

                  The following officers of this Company own stock in the
                  subsidiary, PriceEnergy.Com, Inc., which they incorporated in
                  November 1999.

                           Chief Executive Officer                     23.5%
                           President                                    3.6%

                  No capital contributions have been made by these officers (See
                  Notes 1 and 8).


NOTE 14         EARNINGS PER SHARE
----------------------------------

                  The shares used in the computation of the Company's basic
                  Earnings Per Common Share are as follows:
<TABLE>
<CAPTION>
                                                                                       September 30,            June 30,
                                                                                           2001                   2001
                                                                                           ----                   ----

<S>                                                                                    <C>                    <C>
                  Weighted Average of Common Shares Outstanding                         2,000,298              2,000,000
                  Dilutive Effect of:
                      Employee Stock Options                                               68,232                      -
                      Stock Warrants                                                       10,459                      -
                                                                                        ---------              ---------

                  Weighted Average Common Shares Outstanding,
                                          Assuming Dilution                             2,078,989              2,000,000
                                                                                        =========              =========
</TABLE>

NOTE 15          STOCK OPTION PLANS
-----------------------------------

                  The Company has stock option plans under which stock options
                  may be issued to officers, key employees, and non-employee
                  directors to purchase shares of the Company's authorized but
                  unissued common stock. The Company also has a stock option
                  plan under which stock options may be granted to employees and
                  officers.

                  Options granted currently expire no later than 3 to 5 years
                  from the grant and have vesting periods from none to 25% at
                  grant and 25% each anniversary.


                                       21
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------


NOTE 15          STOCK OPTION PLANS (CONT'D)
--------------------------------------------

<TABLE>
<CAPTION>
                                                                     Outstanding Options
                                                                     -------------------

                                                   Number of               Exercise
                                                    Shares                   Price                Term
                                                    ------                   -----                ----

<S>                                                <C>                         <C>              <C>
January 6, 2000
   Grants                                           56,000                      $5.00            5 years
   Exercises                                             0

December 1, 2000
   Grants                                           48,090                      $3.25            3 years
   Exercises                                         1,250

December 21, 2000
   Grants                                           60,000                      $1.80            5 years
   Exercises                                             0

   Grants                                           24,000                      $2.25            5 years
   Exercises                                             0

</TABLE>

NOTE 16           STOCK WARRANTS
--------------------------------

                  The Company has issued stock warrants as follows:

             1.1  60,000 Common Stock Purchase Warrants at $4.81 per share,
                  effective August 31, 2000, and expiring August 31, 2005, have
                  been issued to Andrew Alexander Wise & Company in connection
                  with an investment banking advisory agreement with the
                  Company, dated July 1, 2000.

             1.2  40,000 Common Stock Purchase Warrants at $4.00 per share,
                  effective June 26, 2001 and expiring June 26, 2004, have been
                  issued in connection with a $500,000 Note Payable (See Note
                  5).

                  The above warrants to purchase shares of common stock were
                  outstanding during the third quarter of 2001, and were
                  included in the computation of diluted EPS as the warrants'
                  exercise price was less than the average market price of the
                  common stock, which was $5.01 for the quarter ended September
                  30, 2001.

                                       22

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                       ----------------------------------

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
               ---------------------------------------------------

                      JUNE 30, 2001 AND SEPTEMBER 30, 2001
                      ------------------------------------



NOTE 17         SUBSEQUENT EVENTS
---------------------------------

                  On October 22, 2001, the Company and its subsidiaries, either
                  as Borrower or Guarantor, entered into a loan and security
                  Agreement with Fleet National Bank. The bank will provide the
                  following credit facility.

                  A borrowing base of 75% of Eligible Accounts Receivable, as
                  defined in the Agreement, plus $500,000 against the value of
                  the Company's customer list, for a total amount of $1,500,000.
                  The revolving credit may also be used for Letters of Credit,
                  with the lender's approval. The Letters of Credit will have an
                  annual fee of 1.25% of the face value of each Letter of
                  Credit. The applicable interest rate on the revolving credit
                  advances will be the bank's prime rate or Libor interest rate,
                  plus 2.75%. Interest is to be paid on the amount advanced on
                  the last day of each month.

                  As security for the performance of this Agreement, the other
                  Loan Documents and the payment of the Liabilities, each
                  Borrower and Guarantor grants, pledges and assigns to Lender a
                  security interest in all assets of such Borrower or Guarantor,
                  whether now owned or hereafter acquired including, without
                  limitation, (a) all Accounts, Goods, Chattel Paper, Equipment,
                  Documents, Deposits, Instruments, General Intangibles and
                  Payment Intangibles (including, but not limited to, any and
                  all interests in trademarks, service marks, patents, licenses,
                  permits, and copyrights), (b) all inventory of Borrowers, if
                  any, held by any Borrowers for sale or lease or to be
                  furnished under contracts of service, (c) all Books and
                  Records, (d) any Account maintained by any Borrower with
                  Lender and all cash held therein, and (e) all proceeds and
                  products of the foregoing, including casualty insurance
                  thereon (collectively, the "Collateral").

                  The Agreement provides for covenants as follows:

                  2.1  Use of proceeds only for Working Capital, Letters of
                       Credit and for acquisitions with Lender's prior written
                       consent.
                  2.2  Financial information to be furnished either annually,
                       quarterly or monthly.
                  2.3  Financial covenants to be tested as of the end of each
                       fiscal quarter.
                  2.4  Limitations on loans and investments.
                  2.5  Compliance with laws and environmental matters.
                  2.6  Limitations on Borrowing.
                  2.7  Can not declare or pay any dividends.

                  All of the above and other items as per article VI of the
                  Agreement.

                  The Agreement has a current expiration date of November 30,
                  2002.


                                       23

<PAGE>


                       ABLE ENERGY, INC. AND SUBSIDIARIES


ITEM 2    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

          Statements in this Quarterly Report on Form 10-QSB concerning the
          Company's outlook or future economic performance, anticipated
          profitability, gross billings, expenses or other financial items, and
          statements concerning assumption made or exceptions to any future
          events, conditions, performance or other matter are "forward looking
          statements," as that term is defined under the Federal Securities
          Laws. Forward-looking statements are subject to risks, uncertainties,
          and other factors which would cause actual results to differ
          materially from those stated in such statements. Such risks, and
          uncertainties and factors include, but are not limited to: (i) changes
          in external competitive market factors or trends in the Company's
          results of operation; (ii) unanticipated working capital or other cash
          requirements and (iii) changes in the Company's business strategy or
          an inability to execute its competitive factors that may prevent the
          Company from competing successfully in the marketplace.

          REVENUE RECOGNITION

          Sales of fuel and heating equipment are recognized at the time of
          delivery to the customer, and sales of equipment are recognized at the
          time of installation. Revenue from repairs and maintenance service is
          recognized upon completion of the service. Payments received from
          customers for heating equipment service contracts are deferred and
          amortized into income over the term of the respective service
          contracts, on a straight line basis, which generally do not exceed one
          year.

          RESULTS OF OPERATIONS

          THREE MONTHS ENDED SEPTEMBER 30, 2001, COMPARED TO THE THREE MONTHS
          ENDED SEPTEMBER 30, 2000.

          The Company reported revenues of $5,267,297 for the three months ended
          September 30, 2001, a decrease of 10.30% over the prior year's
          revenues for the same three month period. This decrease can be
          attributed primarily to a decrease in the cost of product (mainly home
          heating oil) and the resulting lower retail sales price which was sold
          by the Company below the price of the prior year.

          Gross profit margin, as a percentage of revenues, for the three months
          ended September 30, 2001, remained constanT at approximately 10.38%.
          The margin is primarily a result of sales of the Company's products in
          the summer months and lower prices in the current period.

<PAGE>

          Selling, General and Administrative expenses increased by $81,935, or
          7.23%, from $1,132,622 for the three months ended September 30, 2000
          to $1,214,557 for the three months ended September 30, 2001. This
          increase was attributable to the operations of a new subsidiary, Price
          Energy.Com which began operations in October 2000, of salaries,
          advertising and computer consulting costs of approximately $143,000.

          Operating loss for the three months ended September 30, 2001 was
          $965,527, an increase of 37.88% over the Company's operating loss of
          $700,241 for the three months ended September 30, 2000. This increased
          operating loss was directly attributable to the loss incurred by the
          new subsidiary, PriceEnergy.Com, Inc. which was $276,716. Some
          increase in the operating loss was due to a decrease in the price of
          products sold by the Company resulting in a lower gross margin.

          Net loss for the three months ended September 30, 2001 increased by
          $321,227, or 50.93%, to $951,010 as compared to the same period for
          the previous year loss of $628,783. This net loss was the result of a
          new subsidiary loss of $276,716, warmer summer weather and lower gross
          margin on lower sales due to unstable lower product sales prices.


          LIQUIDITY AND CAPITAL RESOURCES

          For the three months period ended September 30, 2001, compared to the
          three months ended September 30, 2000, the Company's cash position
          decreased by $2,184,420 from $2,708,560 to $524,140. For the year
          ended June 30, 2001, cash was generated through operations,
          collections of customer advance payments, and increase loan from an
          outside individual. The primary reason for reduction in cash was a
          loan and investment in PriceEnergy.Com, Inc.

          The Company has entered into an agreement with Fleet National Bank.
          The bank has granted the Company a credit facility of $1,500,000. This
          will enable the Company to continue to grow while strengthening its
          infrastructures. The Company has entered into an agreement with
          PricewaterhouseCoopers Securities, LLC to assist the Company in
          raising debt or equity funds up to $15 million.

          SEASONALITY

          The Company's operations are subject to seasonal fluctuations, with a
          majority of the Company's business occurring in the late fall and
          winter months. Approximately 70% of the Company's revenues are earned
          and received from October through March, with most of such revenues
          are derived from the sale of home heating products including propane
          gas and home heating oil. However, the seasonality of the Company's
          business is offset, in part, by an increase in revenues

<PAGE>

          from the sale of HVAC products and services, diesel and gasoline fuels
          during the spring and summer months, due to the increased use of
          automobiles and construction apparatus.

          From May through September, Able Oil can experience considerable
          reduction of retail heating oil sales. Similarly, Able Propane can
          experience up to 80% decrease in heating related propane sales during
          the months of April to September, this is offset somewhat by increased
          sales of propane gas used for pool heating and fuel for outdoor
          cooking equipment.

          Over 90% of Able Melbourne's revenues are derived from the sale of
          diesel fuel for construction vehicles, and commercial and recreational
          sea-going vessels during Florida's fishing season which begins in
          April and ends in November. Only a small percentage of Able
          Melbourne's revenues are derived from the sale of home heating fuel.
          Most of these sales occur from December through March, Florida's
          cooler months.



                                     PART II
                                OTHER INFORMATION


          ITEM 1. LEGAL PROCEEDINGS

                  None.


          ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

                  None.


          ITEM 3. DEFAULTS UPON SENIOR SECURITIES

                  None.


          ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

                  None.


          ITEM 5. OTHER INFORMATION

                  None.

<PAGE>


          ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

                  (a) Exhibits

                  None.

                  (b) Reports on Form 8-K

                  The Company did not file any reports on Form 8-K during the
          three month period ended September 30, 2001.


<PAGE>


                                   SIGNATURES

                           Pursuant to the requirements of the Securities
                  Exchange Act of 1934, the registrant has duly caused this
                  report to be signed on its behalf by the undersigned thereunto
                  duly authorized.


                                                        ABLE ENERGY, INC.


                  Date:    November 16, 2001      By:  /s/ Christopher  Westad
                                                     --------------------------
                                                       Christopher Westad
                                                       President